City rehabs foreclosed homes

While it may not sound like a traditional job for a city clerk, overseeing the renovation of homes is among the duties of Leavenworth’s city clerk.

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By John Richmeier

The Leavenworth Times - Leavenworth, KS

By John Richmeier

Posted Dec. 28, 2012 at 8:15 AM

By John Richmeier

Posted Dec. 28, 2012 at 8:15 AM

While it may not sound like a traditional job for a city clerk, overseeing the renovation of homes is among the duties of Leavenworth’s city clerk.

For the past several years, the city has been using federal grant money to purchase and rehab vacant, foreclosed homes. The homes then have been resold as part of the federal Neighborhood Stabilization Program.

The program is coordinated in Leavenworth by City Clerk Karen Logan.

“I think it’s a great program for the city,” Logan said.

Under the program, the vacant homes are brought up to neighborhood standards, she said.

She said the city started purchasing and rehabbing homes as part of NSP in 2009. So far, the city has completed work on nine homes and is in the process of working on a 10th one.

Logan said she’s still looking for one or two more houses that can be rehabbed as part of NSP. The city clerk said she also can ask for additional funding for the program that would enable more houses to be rehabilitated.

Seven properties that were rehabilitated by city already have new owners. One of the rehabbed homes, located at 1718 S. Fifth St., is currently up for sale. And the sale of another house is pending.

In some cases, the houses purchased by the city have been torn down and new ones were constructed on the properties.

Logan said the city has been awarded $1.9 million in funding for the program. To date, $1.4 million of the money has been spent.

People have to meet income guidelines in order to purchase one of the NSP homes.

Logan said 25 percent of the money from the grant has to be dedicated to homes for low income individuals or families. These are people who make 50 percent of the median income for the area or less. This currently works out to a maximum of $25,700 for an individual. Other homes in the program can be sold to people who are making up to 120 percent of the median income for the area. This works out to a maximum of $61,550 for an individual.

And people may qualify for financial assistance to be applied toward down payments for the homes.

The program requires that rehabilitated homes be in what is considered a 25-year livability condition.

Logan acknowledged that NSP homes typically are sold in the city for a loss. But she said the intent of the program is not to make a profit.

She said the home at 1718 S. Fifth St., for example, was purchased for $42,500. She said $60,538 worth of work was put into the renovation.

The asking price for the home is $79,995, which would amount to a loss of $23,043.

Page 2 of 2 - Money from the sale of NSP homes in Leavenworth is turned over to the Kansas Department of Commerce, which oversees the federal program for the state. Logan said the money is then reallocated to cities that participate in the program.

Logan said anyone interested in purchasing an NSP home in Leavenworth can contact her at 682-9201.

Information about NSP and income guidelines also can be found on the city’s website, www.lvks.org.